Some NorVergence Victims Get Out Of Scam Leases

from the big-time-scams dept

Back in September we wrote about the NorVergence scam. Basically, the company was selling some telco equipment that was available on eBay for about $300, renaming it "the Matrix," sending fast talking sales people in to small, non-tech savvy businesses, and promising that the box could provide "unlimited broadband, landline and cell phone service with no per-minute charges." The details, of course, proved this wasn't quite true. Also, instead of just selling the boxes, they would lease them for upwards of $300/month for five year leases. Then, to make the scam even better, they sold off those leases to a variety of financial institutions, cashing out right away. The company then proceeded to shut down, making the boxes completely useless -- but the banks who had bought the leases didn't care at all and still expected their money. Thus, they started sending threatening legal letters to those people who weren't paying -- even though none of the "buyers" were actually receiving service. NY Attorney General Eliot Spitzer has now convinced the banks to forgive the leases for NY companies that had been scammed, though there are still plenty of others. Of course, the real issue is that both the financial institutions and the end-customers were scammed -- and the NorVergence executives went off to start another company accused of bilking investors out of millions before shutting down.

Reader Comments

More Dirtbags

I think we should put the NorVergence executives on an island with the Enron scumbags and the Fax.com losers. Ensure there's only enough food to support one person for a little over a year. After a year, if somebody is still alive, they get paroled.

HA HA

Dumb people are so funny (in this case the dumb people are both the original lease signers, and the greedy ass banks that bought the leases without doing due diligence on the lease product).

To the people in the article, I have a nose cleaning "system" you may be interested in. It provides a safe, clean, and anti-germ solution to all your nose problems. Best of all, you lease it so you have low monthly payments and always the latest up-to-date system technology. Please contact me..... (note to self, stock up on boxes of Kleenex, open up new blind checking account, ...).

IFC Tries to Enforce Norvergence Leases

IFC loses its bid to sue UBI
Illinois Us District Court
August 4, 2006

In a 2 hour and 15 minute deliberation an Illinois jury found for the defendant UBI.
After a week long trial attorney Gregory Adamski of Adamski & Conti sufficiently convinced a 12 person jury that IFC was not the holder in due course and therefore could not assert any rights to collect on the leases acquired from Norvergence.